This announcement contains inside information for the purposes of Article 7 of the UK version of the Market Abuse Regulation (EU no. 596/2014) as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 (as amended from time to time) ('UK MAR').

30 January 2025

PICTON PROPERTY INCOME LIMITED

('Picton' or the 'Company')

LEI: 213800RYE59K9CKR4497

Share Buyback Programme

Picton today announces its intention to commence a share buyback programme.

Picton has instructed its corporate broker, Stifel Nicolaus Europe Limited ('Stifel'), to purchase on behalf of the Company, ordinary shares in the capital of the Company of no par value ('Ordinary Shares') pursuant to a buyback programme with a maximum aggregate consideration of £10 million (the 'Programme').

Background

Picton has been pursuing a strategy to reduce office exposure and has disposed of assets that have been actively repositioned for alternative uses. The first disposal completed in April 2024 and, following completion of a second disposal yesterday, it has successfully completed disposals with gross proceeds of £43 million. The third disposal is expected to complete during this financial year, increasing gross proceeds to £51 million. The total gross proceeds are 5% ahead of the independent March 2024 valuation and the disposals have helped to increase portfolio occupancy to 95% (March 2024: 91%).

In 2024 the disposal proceeds were prioritised to repay all the Company's floating rate debt, totalling £16.4 million. The Company now benefits from a loan to value ratio of 25% and fixed rate debt at 3.7% with a 7 year maturity profile.  

Furthermore, the Company has made significant investment into the portfolio to upgrade asset quality and environmental credentials to facilitate leasing transactions, rental and capital growth. During the nine months to 31 December 2024, £8.5 million was invested principally across 25 assets.

Despite the above progress, there remains a material disconnect between the Company's share price and its Net Asset Value per share ('NAV'). As announced on 28 January 2025, the NAV increased by 2.3% for the three months to 31 December 2024 and the closing share price on 29 January 2025 represents a discount to the 31 December 2024 NAV of 37%.

The Board believes the current share price materially undervalues the Company and the share buyback programme is an attractive use of proceeds that will create value for shareholders. In its 2024 Notice of AGM the Company stated that, if such a scenario was to arise, after the payment of dividends, it would repurchase its shares through the market.

Programme

The Programme will be carried out under the existing shareholder authorisation granted at the last Annual General Meeting, in July 2024 ('the AGM'), for purchases of Ordinary Shares by the Company in the market for up to 14.99% of the Company's issued capital as at the AGM, being 82,086,078 Ordinary Shares. The Company intends, at its sole and absolute discretion and subject to prevailing market conditions, to exercise this authority from time to time pursuant to the Programme.

In line with the authority given at the AGM, the maximum price (exclusive of expenses) which may be paid for an Ordinary Share shall be an amount equal to the higher of (i) 105% of the average of the middle market quotations (as derived from the Daily Official List) for the Ordinary Shares for the five business days immediately preceding the date of purchase; or (ii) the higher of such price of the last independent trade and the highest current independent bid at the time of purchase.

Unless previously varied, revoked or renewed, the authority for the Company to repurchase its own shares granted at the AGM will expire at the conclusion of the Annual General Meeting of the Company to be held in 2025 (save that the Company may, prior to such expiry, enter into a contract to purchase Ordinary Shares under such authority and may make a purchase of Ordinary Shares pursuant to any such contract).

Given the level of liquidity in the Company's shares, the Company will retain the ability to exceed the average daily volume parameters prescribed by the exemption for buyback programmes established by UK MAR and the MAR buyback programme technical standards (Commission Delegated Regulation (EU) 2016/1052), as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 (as amended from time to time) (the 'Technical Standards'). Accordingly, the Company may not benefit from the exemption contained in Article 5(1) of MAR.

While the Company has launched the Programme, there is no certainty on the volume of Ordinary Shares that may be acquired under the Programme and the pace of acquisitions. The Board will keep the Programme under review to make sure it continues as an efficient and effective means of generating value for shareholders and the Programme may be cancelled or changed at any time at the Company's sole and absolute discretion.

Any Ordinary Shares repurchased will be cancelled by the Company.

Any market purchase of Ordinary Shares pursuant to the Programme will be announced no later than 7:30am (UK time) on the business day following the day on which the purchase occurred.

The person responsible for arranging the release of this announcement on behalf of the Company is Kathy Thompson, Company Secretary.

For further information:

Picton

Kathy Thompson, Company Secretary

020 7011 9988, kathy.thompson@picton.co.uk

Tavistock 

James Verstringhe

020 7920 3150, james.verstringhe@tavistock.co.uk

About Picton

Established in 2005, Picton is listed on the main market of the London Stock Exchange and is a constituent of a number of EPRA indices including the FTSE EPRA Nareit Global Index.

Picton owns and actively manages a £737 million UK commercial property portfolio, invested across 48 assets and with around 350 occupiers (as at 31 December 2024).

Through an occupier focused, opportunity led approach, Picton aims to be one of the consistently best performing diversified UK REITs and has delivered upper quartile outperformance and a consistently higher income return than the MSCI Quarterly Property Index since launch. 

With a portfolio strategically positioned to capture income and capital growth, currently weighted towards the industrial sector, Picton's agile business model provides flexibility to adapt to evolving market trends over the long-term.

Picton has a responsible approach to business and is committed to being net zero carbon by 2040.

For more information please visit: www.picton.co.uk

ENDS